Company designing UFC videogame faces 50% chance of bankruptcy

The first UFC videogame, titled Undisputed, for the next generation of consoles is currently in development by THQ. But the international developer and publisher of videogames is facing tough financial times.
THQ has lost $334 million dollars this year and their stock prices has fallen from $20 a share to $2 a share.
Now according to Michael Hickey of Janco Partners, the company has a fifty percent chance of going bankrupt (via gamereplays.org).
Currently THQ is trying to save over $220 million next year and are preparing to slash over 600 employees. However, the prognosis remains dark for THQ.
What does this mean for UFC: Undisputed? Well nothing yet, other than the fact that the developer and publisher are in trouble. But there are several things that could happen from THQ's economic misfortune.
The worse case scenario is that the game will be shelved, incomplete and not sold to another publisher or developer. The best case scenario is that THQ survives and publishes the game. If the game is near completion and THQ is going under, then THQ may publish the game before closing shop, a la Ensemble Studios and Halo Wars. Now THQ could also sell the game to developer who is not in trouble, or if things are really bad for THQ they could sell the studio, Yuke's Media Creations, that is creating the game. Since THQ's recent big budget games have been unsuccessful it seems unlikely that will sell off a potential blockbuster, but considering these financial times, no bets are off.
With the UFC's heavy interest in the videogame, e.g., the UFC's reaction to Jon Fitch's reluctance to sign off on selling his image, it would be likely that if THQ were to go under the UFC would buy the product and sell it to another publisher if THQ did not.
Will UFC: Undisputed survive THQ's financial troubles? The answer is most likely yes. But that doesn't mean the game will be a good product.
[WKR incorrectly credited Halo Wars to Creative Assembly when it was in fact produced by Ensemble Studios]
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Comments
i hope the game comes out! ive been looking forward to it ever since the early previews/trailers.. Im interested in seeing how they do the transitions in the game, cause that would probably be reallyyyy hard to replicate..
they said the move’s arent “scripted” like most fighting games are.. (tekken etal..) i dont know how they could pull that off, but if they do, that would be greaaaat!
nice find and good article zak.
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by Anton Tabuena on Mar 5, 2009 10:32 PM EST reply actions 0 recs
it will be interesting to see what happens, but man is the videogame industry hurting. And Undisputed still has not set release date, though it is suppose to come out this year.
Love the contest idea and will join it!
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by Zak Woods on Mar 6, 2009 10:07 AM EST reply actions 0 recs

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